Task Environment and Resource Deployment: Their Impact on the Performance of Telecommunications Firms in Asia-Pacific Countries

Abstract

This research combines both the positioning school and the Resource-Based View models in an analysis of telecommunications firms operating in Asia-Pacific countries. From a strategic management viewpoint, it provides an analysis of the task environment as an external factor, as well as changes in resource deployment as internal factors, to these firms. Thereafter, it examines the influence of a task environment, which has experienced enormous changes resulting from market deregulation and rapid technological advancement, and resource deployment on firm performance. Our findings support the notion that changes in task environment, which correspond to a decrease in market concentration and an increase in task ambiguity lead to a lower profitability rate among firms. In addition, this study also indicates that a firm's ability to respond to changes in the task environment is reflected in changes in resource deployment. Finally, a considerable change in resource deployment is also associated with a higher level of performance. Notably, this study offers some insights on issues of heterogeneity among firms within the telecommunications industry, suggesting that they are uniquely different in term of their objectives and strategic resources.